Sacramento is California’s capital and the center of a large regional economy that runs from Davis and West Sacramento to Roseville, Folsom, and Elk Grove. If you are buying, selling, or leasing, it helps to read the market one sector at a time. Office, retail, industrial, land, and gas station or net-lease investment assets each move on their own cycle. This overview gives the current conditions in each sector, using published third-quarter 2026 research. It also covers the submarkets owners and tenants ask about most.
Talha Torania, Director of Sales and Leasing at eXp Commercial, has more than 10 years of experience and over $1 billion in transactions. He advises Sacramento-area owners, investors, and tenants on all of these property types.
Sacramento Office Market
Office is still the sector where results depend most on location and building quality. In its Q3 2026 Sacramento Office Market Report, Kidder Mathews reported a direct vacancy rate of 11.0%, the same as the prior quarter and a year earlier. Total availability was 13.9%. The average direct asking rate was $2.15 per square foot per month, full service. Net absorption was slightly negative for the quarter, at about −37,000 square feet.
The same report shows how wide the gap is between submarkets. Direct vacancy ranged from 2.1% in Elk Grove to 23.9% in South Natomas. Downtown, the largest office submarket, lost the most occupancy during the quarter. The Highway 50 Corridor gained the most. With little new construction, well-located and well-maintained buildings remain competitive. Owner-users can also often find buying opportunities in older Class B and C product.
Looking for office space? See our Sacramento office space page.
Sacramento Retail Market
Retail has been one of the region’s steadiest sectors. In its Q3 2026 Sacramento Retail Market Report, Kidder Mathews reported vacancy of 5.9% and average asking rents of $1.55 per square foot per month, up 4.25% from a year earlier. Year-to-date net absorption was about 400,000 square feet, compared with negative absorption over the same period in 2025. Retail under construction fell about 65% year over year. A limited supply of new space tends to favor existing centers.
On the investment side, the same report showed an average retail cap rate of 6.7% and an average sale price of $263 per square foot for the quarter. Neighborhood centers with grocery or service anchors, freestanding quick-service pads, and well-leased strip centers on busy corridors continue to draw buyers. Read more on our Sacramento retail space page.
Sacramento Industrial Market
Industrial demand in the region comes from its position on Interstate 5, Interstate 80, and Highway 50, which serve Northern California and Nevada distribution. In its Q3 2026 Sacramento Industrial Market Report, Kidder Mathews reported direct vacancy of 6.1%, down from 6.3% the prior quarter. Total availability held at 10.1%. The average asking rent was $0.80 per square foot per month, NNN, and the quarter posted roughly 348,000 square feet of positive direct net absorption. About 1.6 million square feet was under construction, which the report describes as limited compared with the market’s total inventory of roughly 188 million square feet.
The largest industrial submarkets in that report include Power Inn, Natomas/Northgate, McClellan, and Davis/Woodland. Elk Grove/Laguna, Mather (near Rancho Cordova), and West Sacramento also hold large amounts of space. Small-bay flex and contractor yards stay in demand with local businesses, while large distribution buildings depend more on regional logistics demand. See Sacramento industrial property.
Commercial Land
Land deals depend on zoning, entitlements, utilities, and access, so a citywide average says little about any single parcel. Activity is concentrated in growth areas along the region’s edges, including North Natomas, the Highway 99 corridor through Elk Grove, the Highway 50 corridor through Rancho Cordova, and the Placer County growth areas around Roseville. Before you price or buy a site, check the applicable general plan and zoning with the city or county planning department. Then confirm utility capacity and any fees. Learn more on our Sacramento commercial land page.
Gas Stations and Investment Properties
Gas stations, convenience stores, and single-tenant net-lease buildings are a large part of the Sacramento investment market, especially for 1031 exchange buyers who want income they can count on. Value depends on fuel and inside-store sales, the brand or supply agreement, the lease term and who pays which expenses, environmental history, and the condition of tanks and equipment. Buyers should expect to review environmental reports and operating figures early, usually under a confidentiality agreement and through a confidential brochure.
If you are selling one property and buying another, our 1031 tax-free exchange guidance explains how to match identification and closing deadlines to available properties. Browse current properties for sale and lease.
Key Sacramento-Area Submarkets
- Downtown / Midtown: Government and professional office, urban retail, and mixed-use buildings.
- Natomas / Northgate: Large industrial and distribution space near Interstate 5 and the airport, plus newer retail.
- Power Inn / South Sacramento: The region’s largest industrial submarket, plus corridor retail along Florin Road, Stockton Boulevard, and Franklin Boulevard.
- Highway 50 Corridor: Suburban office, flex, and retail between Sacramento and Rancho Cordova. See Rancho Cordova commercial real estate.
- Roseville / Rocklin: Suburban office, regional retail, and medical uses. See Roseville commercial real estate.
- Elk Grove / Laguna: The tightest office submarket in the Kidder Mathews Q3 2026 report, plus growing retail and industrial. See Elk Grove commercial real estate.
How We Help
We represent sellers, buyers, landlords, and tenants in office, retail, industrial, land, and gas station transactions across the Sacramento region. Our work includes pricing opinions, marketing with a confidential brochure, buyer qualification, lease negotiation, and coordinating 1031 exchanges. Learn more about our brokerage services, or contact Talha Torania at (916) 346-9758 or saccommercials@gmail.com.
eXp Commercial · Talha Torania, Director of Sales and Leasing · DRE #02056948 · 915 Highland Pointe Dr, Suite 250, Roseville, CA 95678
Frequently Asked Questions
What is the office vacancy rate in Sacramento?
Kidder Mathews reported a direct office vacancy rate of 11.0% for Q3 2026, with total availability at 13.9%. Other firms use different definitions and building sets, so their published rates differ. Always compare figures from the same source.
Is Sacramento retail space in demand?
Yes. Kidder Mathews reported Q3 2026 retail vacancy of 5.9%, asking rents up 4.25% year over year, and positive year-to-date net absorption. It also reported that retail construction fell sharply.
Which Sacramento submarkets have the most industrial space?
In the Kidder Mathews Q3 2026 report, Power Inn, Natomas/Northgate, McClellan, and Davis/Woodland have the largest industrial inventories in the region.
Can I use a 1031 exchange to buy a Sacramento commercial property?
Many investors use 1031 exchanges to buy gas stations, retail, and other income properties. Work with a qualified intermediary and your tax advisor. See our 1031 exchange page.
How do I get information on an off-market property?
Qualified buyers usually sign a confidentiality agreement and then receive a confidential brochure with the property details. Contact us to tell us what you are looking for.